Transcontinental reports Q1 loss

Commercial printer Transcontinental reported consolidated totaled $604.1 mil­lion in the first quarter ended January 31, compared to $596 million during the same quarter in 2008.

However, excluding acquisitions and the positive impact of paper prices and the exchange rate, the company said its con­solidated revenues dropped 10%.

Transcontinental said its business was particularly affected by the cancellation, decrease or postponement of promotional and advertising campaigns, mainly by financial institutions and car manufactur­ers, which affected its US direct mail activi­ties, magazine publishing and commercial products printing.

The company's net income declined from $34.1 million in the first quarter 2008 to a loss of $6.4 million, a decrease of $40.5 million. On a per-share basis, net income decreased from 41 cents to a loss of eight cents.

To deal with the situation, Transcontinental said it will go forward with a rationalization plan that has included eliminating approxi­mately 1,500 jobs, half of which are in the US. In addition, certain plants and publica­tions have already been shut down, while others are slated for closure.